Ponzi Schemes in the Caribbean

46 Pages Posted: 19 May 2009

See all articles by Ana Carvajal

Ana Carvajal

International Monetary Fund (IMF)

Hunter Monroe

International Monetary Fund (IMF)

Brian Wynter

International Monetary Fund (IMF)

Catherine A. Pattillo

International Monetary Fund (IMF) - Research Division

Date Written: April 2009

Abstract

In several Caribbean states, unregulated investment schemes grew quickly in recent years by claiming unusually high monthly returns and through a system of referrals by existing members. These are features shared with traditional Ponzi schemes and pyramid schemes. This paper describes the growth of such schemes, their subsequent collapse, and the policy response of regulators, and presents key policy lessons. The analysis and recommendations draw on country experiences in the Caribbean, and in such diverse countries as the United States, Colombia, Lesotho, and Albania.

Keywords: Private investment, Caribbean, Capital markets, Securities markets, Nonbank financial sector, Capital flows, Income, Securities regulations, Cross country analysis

Suggested Citation

Carvajal, Ana and Monroe, Hunter and Wynter, Brian and Pattillo, Catherine, Ponzi Schemes in the Caribbean (April 2009). IMF Working Papers, Vol. , pp. 1-44, 2009. Available at SSRN: https://ssrn.com/abstract=1403766

Ana Carvajal (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Hunter Monroe

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Brian Wynter

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Catherine Pattillo

International Monetary Fund (IMF) - Research Division ( email )

700 19th Street NW
Washington, DC 20431
United States

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